Is now the right time for solar energy, Chicago?

Can solar panels save you some serious cash?

Solar power is one of the most promising forms of renewable energy. It's clean and freely available, and the systems are increasingly easy and affordable to install. And while solar energy certainly makes sense from an environmental perspective, what many people don't realize is that, for many homeowners, it also makes financial sense — even in Chicago.

Since President Obama took office, the number of homes with rooftop solar has grown from more than 66,000 to about 734,000, according to a September 2015 statement from the White House's Office of the Press Secretary. Since early 2010, the average cost of a solar electric system has dropped by 50%, the White House reported.

So is switching to solar right for you? The answer: probably, although it depends on a few factors, including the location of your house and whether you can make a significant up-front investment.

"Solar is one of the best all-time investments a person can make for their property," said Brandon Leavitt, president of Solar Service Inc., a solar installation company in Chicago. "It pays more than the cost of not doing it. Your property's net worth goes up, your cost of living goes down, and the government pays 30% to 40% of the cost."

That's because there are generous incentive programs for switching to solar. An average residential system costs around $20,000, but a federal tax credit can cover about $6,000, and the homeowner can qualify for up to $5,000 in carbon offset payments. When you look at it over 25 years, the warranty length for solar systems, it comes to roughly 6 cents per kilowatt — a savings of 5 cents per kilowatt over the current Illinois average for energy.

There are also programs that offer homeowners the ability to lease solar systems for a monthly flat fee or to host solar panels on their property and simply purchase the energy generated from the company that installed the panels. These generally result in lower electric bills and are a good choice for people who can't get a loan or provide the up-front payment to buy the system. But those options don't offer the same long-term financial benefit as owning the solar panels.

One common misconception about solar is that it's a good option only for people in warm places like Arizona and Southern California. But solar panels are sensitive enough to work in overcast conditions. Germany is currently one of the greatest producers of solar power in the world.

Chicago gets more sun than many people realize. According to a January 2014 fact sheet from the Illinois Solar Energy Assn., "Chicago has nearly as much usable sunlight as Atlanta or Los Angeles."

Yet another great reason for Chicago residents to switch to solar: Illinois has one of the best net metering programs in the country. Net metering means the solar system on a person's home is connected to the local utility's electrical grid, in this case Commonwealth Edison. When production of energy from the panels exceeds the homeowner's usage, ComEd gives the homeowner a credit for the energy, effectively storing extra electricity for free.

"Instead of needing batteries to store excess power, you just send it to the grid and you're not charged a penny to store it," Leavitt said. "You know rollover minutes on your cell phone plan? This is the same idea. It's like rollover kilowatts." The only downside is that the credits last for just one year, which is a good reminder for homeowners to install a solar system that closely matches their home's energy needs.